New Delhi, May 11 -- When it comes to adjusting interest rates, this could be it for the Federal Reserve. And that is a boon for cash assets, like Treasury bills.

Increasingly economists are contemplating a scenario where the central bank makes no change to rates. Bank of America, on Friday, pushed its forecast for rate cuts to mid-2027 from late this year, but caveats there's a high risk of unexpected outcomes like an "indefinite hold" from the Fed.

Uncertainty about the level of shock that the Iran war, tariffs, immigration policy and artificial intelligence will inflict on the labor market and inflation-the Fed's two main concerns-means the "tails are fat," BofA's head of economics Aditya Bhave and his team wrote. That is another way...